Shares of Piramal Enterprises touched a 52-week low of Rs 869.40, as they tanked 9% in Monday’s intra-day trade. The financial services company’s stock fell below its previous low of Rs 900.70, which it had hit on June 20, 2022, according to BSE data.

In the last two trading days, the market price of Piramal Enterprises slipped 11% after the Reserve Bank of India (RBI) directed Mahindra & Mahindra (M&M) Financial Services to stop any recovery and repossession activities through an outsource till further orders.

Also Read | Midday report: Sensex falls 857 points, Nifty down 286 points

“The action is based on certain material supervisory concerns observed in the said non-banking finance company (NBFC), with regard to the management of its outsourcing activities. However, the NBFC may continue to carry out recovery or repossession activities, through its own employees,” the RBI had said on September 22.

Shares of Piramal Enterprises traded 6.58% lower at Rs 891.25 at 3:08 pm, as compared to a 1.25% decline in the S&P BSE Sensex.

Also Read | Week ahead: RBI interest rate decision, rupee movement to weigh on Sensex, Nifty

Piramal Enterprises, after the demerger of its pharmaceutical business, is an NBFC with a presence across retail and wholesale financing, and assets under management (AUM) of Rs 64,590 crore. The company aims to build a presence across 1,000 locations (with 500-600 branches) across India, over the next 5 years.

Also Read | Trending Stocks: BPCL, Coal India, Nestle India and others in news today

“We also plan to continue to build newer partnerships in our embedded finance business, resulting in 40-50 percent growth in retail disbursements (on a CAGR basis). This will enable us to double the overall AUM from FY22 levels, despite reduction in our existing wholesale book (in line with our strategy to make it more granular), resulting in our loan book mix moving towards two-third retail loans and one-third wholesale loans,” Piramal Enterprises said in their FY22 annual report.

Also Read | Week in review: Sensex, Nifty fall as inflation fears weigh on investor sentiment

With a scalable, tech-driven lending platform, significant firepower for organic growth and acquisitions (given our low debt/equity of the FS business at 2.7x), and considerable value-unlocking potential (i.e. investments in Shriram), the company remains well-poised to become one of the largest, top-quality NBFC in the coming years, the management said.

According to analysts at Motilal Oswal Financial Services, the company will gain traction as the disbursement run-rate improves. It remains optimistic about the NBFC’s retail lending business.

Also Read | All metal companies of Tata Group merged into Tata Steel

“Multiple partnerships with fintech and consumer-techs have aided the momentum in the embedded finance product segment.” We expect the wholesale loan book to moderate as the company looks to aggressively create provisions on stressed exposures, and monetize them,” the brokerage firm said.